Earnings release
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Hot Chili Limited ACN 130 955 725 First Floor, 768 Canning Highway, Applecross, Western Australia 6153 PO Box 1725, Applecross, Western Australia 6953 P: +61 8 9315 9009 F: +61 8 9315 5004 www.hotchili.net.au @hotchiliIR Contact Mr Christian Easterday Managing Director E: admin@hotchili.net.au @hotchililimited ASX: HCH TSXV: HCH OTCQX: HHLKF Highlights La Verde Emerging as Hot Chili Cornerstone Asset • Drilling at the Company’s La Verde copper-gold (Cu-Au) porphyry deposit in coastal Chile continued during the quarter, with a third drill rig commencing in May. • La Verde is one of Chile’s most significant new coastal Cu -Au porphyry discoveries and is fast -shaping as a cornerstone asset for the Company’s coastal range Costa Fuego copper-gold (Cu-Au) project. • Standout results reported during the quarter included: • DKD044 recorded 391.1 m grading 0.51% CuEq¹ (0.42% Cu, 0.11 g/t Au) from surface, including: o 17.8 m grading 0.68% CuEq (0.63% Cu, 0.06 g/t Au) from surface o 40.7 m grading 0.60% CuEq (0.50% Cu, 0.12 g/t Au) from 103.3 m o 85.4 m grading 0.61% CuEq (0.50% Cu, 0.15 g/t Au) from 160 m o 19.7 m grading 0.70% CuEq (0.57% Cu, 0.15g/t Au) from 276.1 m • DKP053 recorded 250 m grading 0.50% CuEq (0.39% Cu, 0.14g/t Au) from 64 m depth, including o 36 m grading 0.72% CuEq (0.59% Cu, 0.18g/t Au) from 82 m • DKP054 recorded 124 m grading 0.46% CuEq (0.40% Cu, 0.07g/t Au) from 42 m depth, including o 26 m grading 0.71% CuEq (0.63% Cu, 0.10g/t Au) from 58 m • DKP058 recorded 108 m grading 0.54% CuEq (0.45% Cu, 0.11 g/t Au) from 24 m depth, including o 32 m grading 0.60% CuEq (0.52% Cu, 0.12 g/t Au) from 24 m • DKD049 recorded 213 m grading 0.44% CuEq (0.38% Cu, 0.07g/t Au) from 504 m depth, including o 57.3 m grading 0.60% CuEq (0.51% Cu, 0.10 g/t Au) from 535.8 m • DKP028D recorded 258.9 m grading 0.42% CuEq (0.33% Cu, 0.09 g/t Au) from 358 m, including o 27.4 m grading 0.76% CuEq (0.63% Cu, 0.16 g/t Au) from 499.5 m • Assays pending for 21 drillholes (three DD, three DD tails and 15 RC) and second accredited laboratory now operating at full capacity – significantly improving Hot Chili’s assay turnaround times Hot Chili Secures US$15 Million Via Amendment Agreement with OR Royalties • La Verde, a pre-resource asset, is now added to OR’s royalty footprint for US$15 million in funding • OR royalty “look-through” value has doubled, given its equivalence to a 1.12% CuEq 1 NSR royalty across payable metals for a total consideration of US$30 million (following additional US$15 million amendment agreement), and Hot Chili’s current market capitalisation of approximately US$230 million • Change of Control Royalty Buyback terms aligned with ongoing strategic partnering process Strong Cash Position of Approx. A$46 Million Following Closure of OR Deal 1 CuEq considers assumed commodity prices and average metallurgical recoveries from test work. See qualifying statements below. 2 US$15 million (approximately A$21.4 million) Quarterly Report Period Ending 30 June 2026 Release Date: 30 July 2026
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3 ASX: HCH TSXV: HCH OTCQX: HHLKF Hot Chili Limited ACN 130 955 725 First Floor, 768 Canning Highway, Applecross, Western Australia 6153 PO Box 1725, Applecross, Western Australia 6953 P: +61 8 9315 9009 F: +61 8 9315 5004. www.hotchili.net.au @hotchiliIR @hotchililimited Diamond and RC Drill rigs accelerating development of the La Verde Cu-Au deposit Cautionary Statement – JORC Code (2012) The Costa Fuego Copper-Gold Project is currently at the Pre -Feasibility Study (“PFS”) stage. The production targets and forecast financial information contained in this report are based on technical and economic assessments that are preliminary in nature. While th e PFS incorporates Indicated and Inferred Mineral Resources, there is a lower level of geological confidence associated with Inferred Mineral Resources, and no certainty that further exploration or development will result in the conversion of Inferred Mineral Resources to Indicated or Measured categories. The PFS is not a definitive study and is based on a number of assumptions, including commodity prices, capital and operating costs, metallurgical recoveries, permitting, and other factors, which are subject to change. The outcomes of the PFS should not be used as the basis for a final investment decision. Further work, including additional drilling, metallurgical testing, and detailed engineering, is required before the Company can make a decision to proceed to development. Of the Mineral Resources scheduled for extraction in the PFS production plan, more than 99% are classified as Indicated, with the remaining <1% as Inferred. The Company has concluded that it has reasonable grounds for disclosing a production target which includes a small amount of Inferred Mineral Resources, as permitted under the JORC Code. There is a low level of geological confidence associated wit h Inferred Mineral Resources and there is no certainty that further exploration work will result in the determination of Indicated Mineral Resources or that the production target itself will be realised. The viability of the development scenario envisaged in the PFS does not depend on the inclusion of Inferred Mineral Resources. However, it is reasonably expecte d that the majority of Inferred Mineral Resources could be upgraded to Measured or Indicated Mineral Resource with continued drilling. The Mineral Resources underpinning the production target in the PFS have been prepared by a Competent Person in accordance with the requirements of the JORC 2012. For full details on the Mineral Resource estimate, please refer to the ASX announcement of 27 March 2025. To achieve the outcomes indicated in the PFS, including reaching Definitive Feasibility Study (“DFS”), mine construction and production stages, funding in the order of US$1.27 Billion will be required, including pre-production and working capital and assumed financing charges. Investors should note that there is no certainty that Hot Chili will be able to raise that amount of funding when needed. One of the key assumptions is that the funding for the Project will be available when required and on acceptable terms. It is also possible that such funding may only be available on terms that may be dilutive to, or otherwise affect the value of, Hot Chili’s existing shares. It is also possible that Hot Chili could pursue other value realisation strategies such as debt financing, a sale or partial sale of its interest in the Costa Fuego Copper Project and/or Huasco Water, sale of further royalties and/or streaming rights, sale of non -committed offtake rights, and sale of non -core assets. The Company cautions that there is no certainty that the results or estimates contained in the PFS will be realised. This Report contains forward-looking statements. Hot Chili has concluded that it has a reasonable basis for providing these forward -looking statements and believes it has a reasonable basis to expect it will be able to fund development of the Costa Fuego Copper Project. However, a number of factors could cause actual results or expectations to differ materially from the results expressed or implied in the forward-looking statements. Given the uncertainties involved, investors should not make any investment decisions based solely of the results of the PFS.
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Page 4 of 33 SUMMARY OF OPERATIONAL ACTIVITIES Higher-Grade Starter Pit Firming as a Standout Feature of La Verde The Company's ongoing focus on shallow infill and step -out drilling a cross the up-dip extension of La Verde's high-grade core, continued to deliver more outstanding results from Reverse Circulation (RC) drill holes DKP053, DKP054, DKP056, and DKP058 (Figure 1 and Figure 2) during the quarter. Numerous drilling intersections returned across the up-dip portion of La Verde’s high-grade core, all contain broad zones of higher-grade (+0.7% CuEq) mineralisation from shallow depths. Importantly, assay results are pending for nearby up -dip drillhole DKP052 (Figure 3), results expected soon (see announcement dated 5 May 2026). These ongoing shallow RC drill results further expand the footprint of near -surface, higher-grade mineralisation and continue to strengthen the scale and continuity of a significant, near-surface, enrichment zone - capable of delivering a higher-grade starter pit opportunity for Costa Fuego (Figure 4). Expansion Drilling Delivering Continued Success Diamond (DD) drilling assay results for step -out holes DKD044, DKD049 and DKP028D also confirmed additional bulk tonnage extensions and delivered further expansion of La Verde’s high-grade core (Figures 2 and 3) during the quarter. Assay results from DKD044 returned a significant intersection of 391 m grading 0.51% CuEq (0.42% Cu, 0.11g/t Au) from surface, (Figure 1), including several higher -grade intervals, confirming broad and continuous high-grade copper-gold mineralisation on the western side of the high-grade core DD hole DKD049 was designed as a 175 m step-out from DKD039 - which recorded the highest-grade and widest drilling intersection to date at La Verde (725 m grading 0.42% CuEq (0.36% Cu, 0.07 g/t Au from 18m depth). Results from DKD049 confirm a significant expansion of La Verde’s eastern flank at depth. DKP028D successfully extended a previous RC drillhole (which ended in mineralisation), recording a further 200m down-hole of mineralisation across La Verde’s western flank. Advancing Toward Maiden Mineral Resource and Pre-Feasibility Study (PFS) Integration Hydrogeological, geotechnical, metallurgical, mine engineering and environmental workstreams are all advancing well toward full integration of La Verde into the Company’s Costa Fuego production hub. Additional mineralogical analysis activities were also carried out during the quarter, including Terraspec data collection and drill core scanning using LithologyIQ’s hyperspectral instrument. A maiden Mineral Resource Estimate (MRE) for La Verde is expected to be released later this year followed by a revised PFS for Costa Fuego and then finally culminating in the formal submission of an Environmental Impact Assessment for Costa Fuego in Q2CY 2027. The Company expects that La Verde’s rapid integration will be transformative for Costa Fuego’s financial metrics and global standing, already ranked amongst the world’s top five by -scale1, independent copper developments, not controlled by a major mining company. 1 See Slide 20, Corporate Presentation Rule Symposium – July 2026
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Page 5 of 33 Additional ISO Accredited Assay Laboratory Engaged During the quarter , delivery of assay results increased to over 1 0 weeks in some cases. Hot Chili took proactive measures and engaged the services of an additional ISO accredited laboratory in the region, to ensure reporting of outstanding assay results is fast tracked, and assay turnaround times are accelerated. Improved turnaround times have been noted from both laboratories since the addition of a second laboratory. Project Development Advances Hot Chili has established a dedicated project development team, led by experienced project director Mr David Bayona, to advance the Costa Fuego Project through its critical development phase. Under a single governance framework, the team is overseeing delivery of the Environmental Impact Assessment (EIA) and the revised Pre-Feasibility Study (PFS) programs, coordinating engineering, permitting, social performance, infrastructure, technical studies, project controls, key service providers, and third -party stakeholders. This organisational transition marks an important step in Hot Chili’s evolution from an exploration-focused company to a project development and delivery organisation, strengthening readiness for permitting, financing, detailed engineering and project execution. The integrated structure improves decision-making, maintains alignment across workstreams and enhances schedule discipline, positioning Costa Fuego for successful execution. Environmental Impact Assessment (EIA) On-Track The Costa Fuego Environmental Impact Assessment (EIA) continues to advance , supported by a comprehensive schedule that enables weekly and monthly monitoring of progress, critical path activities, and milestones across all environmental workstreams. A key strategic decision adopted during the quarter was the separation of the environmental permitting process into two independent EIAs: • EIA 1A - Huasco Water seawater intake, pumping and distribution system • EIA 1B - Costa Fuego Development Project. This approach provides greater clarity for regulators, establishes independent areas of influence for environmental assessment, reduces duplication of baseline and impact evaluation work, and aligns the seawater supply system with the development of the mining project. Key workstreams advanced during the quarter included environmental baseline studies, community and stakeholder engagement, indigenous engagement program, and preparation of the formal EIA documentation. Revised Pre-Feasibility (PFS2) In May 2026, Hot Chili commenced workstreams toward delivery of a significant revision of its 2025 Pre- Feasibility Study (PFS) , aiming to in corporate the La Verde Cu-Au discovery into the Costa Fuego development strategy. The study remains on track and is being progressed in parallel with the Environmental Impact Assessment (EIA 1B) program under a common project governance framework.
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Page 6 of 33 The revised study is assessing development options to improve project economics, reduce execution risk and simplify project delivery. Key areas of assessment include the integration of La Verde and the potential development of a large open -pit mining scenario at Cortadera as an alternative to the previously defined open-pit and underground block cave operation for the later years of Costa Fuego’s mine plan. Results from the study will support selection of the preferred development pathway for Costa Fuego and provide greater clarity on project scope, mining strategy, infrastructure requirements and project economics. Huasco Water – Update on Second Maritime Licence Application A second maritime license application (desalination license) continues to advance through regulatory approval processes. Owing to a change of government in Chile earlier this year, the application has been delayed. Hot Chili has been assured by regulatory authorities that the application remains in progress, in- line with Huasco Water’s priority status with the Chilean Ministry of Finance for streamlined approval processing. The Company expects to receive an update in relation to this application in the coming months. Social Integration and Community Support Hot Chili continued its Huasco Valley community support programs during the quarter. A community perception study completed in June 2026, recorded a 93% “High Positive Awareness ” score, with respondents recognising the Company’s positive community relationships, and potential to develop a modern and responsible mining operation with the potential to revitalise employment social benefit for the Huasco Valley region. During recent severe weather events in July, that prompted a government -declared state of emergency, Hot Chili worked pro-actively with local communities to prepare - providing water, fuel, food and coal to neighbouring residents of Costa Fuego. Following this once-in-fifty-year rain event , the team resumed visits to reconnect with communities, providing supplies and learning first -hand what was needed for recovery. (Left) Hot Chili Community Team providing support to neighbours of the Costa Fuego Project and (Right) impact of the recent rain event on regional infrastructure
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Page 7 of 33 Figure 1. Plan view map of La Verde showing recent drill hole results and updated +0.2% copper (yellow), +0.3% copper (red), +0.4% copper (magenta) mineralisation interpolants. Drilled holes with pending assays are shown in black. Position of A – A’ cross section ( Figure 2), and B – B’ cross section (Figure 3) annotated with white dashed lines. Conceptual open pit shells1 displayed for $US3.50/lb Cu (blue) and $US6.00/lb Cu (green) displayed as dashed lines. Results reported including CuEq2. 1 See Page 25 of this announcement for detail on the US$3.50 Cu and US$6.00 Cu conceptual open pit shells (Exploration Targets). Any potential tonnage and grade of the Exploration Target shown is conceptual in nature. There has been insufficient exploration to estimat e a Mineral Resource within the target area, and it is uncertain if further exploration will result in the estimation of a Mineral Resource. 2 Copper Equivalent (CuEq) reported for the drillhole intersections were calculated using the following formula: CuEq% = ((Cu% × Cu price 1% per tonne × Cu_recovery) + (Mo ppm × Mo price per g/t × Mo_recovery) + (Au ppm × Au price per g/t × Au_recovery) + ( Ag ppm × Ag price per g/t × Ag_recovery)) / (Cu price 1% per tonne × Cu_recovery). The Metal Prices applied in the calculation were: Cu=4.50 USD/lb, Au=3,150 USD/oz, Mo=20 USD/lb, and Ag=30 USD/oz. The entirety of the intersection is assumed as fresh. Th e recovery and copper equivalent formula for La Verde uses Cortadera as a proxy, which is considered reasonable given both the similar mineralisation style and amenability testwork com pleted thus far at La Verde – Recoveries of 83% Cu, 56% Au, 83% Mo and 37% Ag. CuEq (%) = Cu (%) + 0.69 x Au(g/t) + 0.00044 x Mo(ppm) + 0.0043 x Ag(g/t).
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Page 8 of 33 Figure 2. Long-section slice (A – A’) showing recent drill hole results and updated +0.2% copper (yellow), +0.3% copper (red), +0.4% copper (magenta) mineralisation interpolants. Returned Cu grades shown on hole traces, drilled holes with pending assays are shown in black. Conceptual open pit shells 1 displayed for $US3.50/lb Cu (blue) and $US6.00/lb Cu (green) displayed as dashed lines. Results reported including CuEq 2. 1 See Page 25 of this announcement for detail on the US$3.50 Cu and US$6.00 Cu conceptual open pit shells (Exploration Targets). Any potential tonnag e and grade of the Exploration Target shown is conceptual in nature. There has been insufficient exploration to estimate a Mineral Resource within the target area, and it is uncertain if further exploration will result in the estimation of a Mineral Resource. 2 Copper Equivalent (CuEq) reported for the drillhole intersections were calculated using the following formula: CuEq% = ((Cu% × Cu price 1% per tonne × Cu_recovery) + (Mo ppm × Mo price per g/t × Mo_recovery) + (Au ppm × Au price per g/t × Au_recovery) + ( Ag ppm × Ag price per g/t × Ag_recovery)) / (Cu price 1% per tonne × Cu_recovery). The Metal Prices applied in the calculation were: Cu=4.50 USD/lb, Au=3,150 USD/oz, Mo=20 USD/lb, and Ag=30 USD/ oz. The entirety of the intersection is assumed as fresh. Th e recovery and copper equivalent formula for La Verde uses Cortadera as a proxy, which is considered reasonable given both th e similar mineralisation style and amenability testwork completed thus far at La Verde – Recoveries of 83% Cu, 56% Au, 83% Mo and 3 7% Ag. CuEq (%) = Cu(%) + 0.69 x Au(g/t) + 0.00044 x Mo(ppm) + 0.0043 x Ag(g/t).
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Page 9 of 33 Figure 3. Cross section slice (B – B’) showing recent drill hole results DKP053 and DKP054 (± 75m clipping) and updated +0.2% copper (yellow), +0.3% copper (red), +0.4% copper (magenta) mineralisation interpolants. Returned Cu grades shown on hole traces, drilled holes with pending assays are shown in black. Conceptual open pit shells1 displayed for $US3.50/lb Cu (blue) and $US6.00/lb Cu (green) displayed as dashed lines. Results reported including CuEq2. Assay pending for DKP052. 1 See Page 25 of this announcement for detail on the US$3.50 Cu and US$6.00 Cu conceptual open pit shells (Exploration Targets). Any potent ial tonnage and grade of the Exploration Target shown is conceptual in nature. There has been insufficient exploration to estimate a Mineral Resource within the target area, and it is uncertain if further exploration will result in the estimation of a Mineral Resource. 2 Copper Equivalent (CuEq) reported for the drillhole intersections were calculated using the following formula: CuEq% = ((Cu% × Cu pr ice 1% per tonne × Cu_recovery) + (Mo ppm × Mo price per g/t × Mo_recovery) + (Au ppm × Au price per g/t × Au_recovery) + (Ag ppm × Ag price per g/t × Ag_recovery)) / (Cu price 1% per tonne × Cu_recovery). The Metal Prices applied in the calculation were: Cu=4.50 USD/lb, Au=3,150 USD/oz, Mo=20 USD/lb, and Ag=30 USD/ oz. The entirety of the intersection is assumed as fresh. Th e recovery and copper equivalent formula for La Verde uses Cortadera as a proxy, which is considered reasonable given both th e similar mineralisation style and amenability testwork completed thus far at La Verde – Recoveries of 83% Cu, 56% Au, 83% Mo and 3 7% Ag. CuEq (%) = Cu(%) + 0.69 x Au(g/t) + 0.00044 x Mo(ppm) + 0.0043 x Ag(g/t).
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Page 10 of 33 Figure 4. Oblique slice towards NW (Azi 325°, Plunge+26°). 0.3% and 0.4% Cu interpolants displayed for oxide and transitional material, sliced along NNE orientation with the front removed. US$3.50/lb Cu conceptual open pit shell displayed in dark grey; US$6.00/lb Cu conceptual open pit shell displayed in light grey1. Base of weathering shown as dashed blue line. Results reported including CuEq2. 1 See Page 25 of this announcement for detail on the US$3.50 Cu and US$6.00 Cu conceptual open pit shells (Exploration Targets). Any potential tonnage and grade of the Exploration Target shown is conceptual in nature. There has been insufficient exploration to estimate a Mineral Resource within the target area, and it is uncertain if further exploration will result in the estimation of a Mineral Resource. 2 Copper Equivalent (CuEq) reported for the drillhole intersections were calculated using the following formula: CuEq% = ((Cu% × Cu price 1% per tonne × Cu_recovery) + (Mo ppm × Mo price per g/t × Mo_recovery) + (Au ppm × Au price per g/t × Au_recovery) + ( Ag ppm × Ag price per g/t × Ag_recovery)) / (Cu price 1% per tonne × Cu_recovery). The Metal Prices applied in the calculation were: Cu=4.50 USD/lb, Au=3,150 USD/oz, Mo=20 USD/lb, and Ag=30 USD/ oz. The entirety of the intersection is assumed as fresh. Th e recovery and copper equivalent formula for La Verde uses Cortadera as a proxy, which is considered reasonable given both th e similar mineralisation style and amenability testwork completed thus far at La Verde – Recoveries of 83% Cu, 56% Au, 83% Mo and 3 7% Ag. CuEq (%) = Cu(%) + 0.69 x Au(g/t) + 0.00044 x Mo(ppm) + 0.0043 x Ag(g/t).
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Page 11 of 33 Table 1. Drill Holes Completed for La Verde in Quarter 2 2026 Prospect Hole ID East North RL Depth Dip Azi. Results La Verde MWDKP001 324,064 6,786,124 1,106 54 -90 0 No significant result returned MWDKP002 325,511 6,785,654 1,171 90 -90 0 No significant result returned MWDKP003 323,167 6,787,100 1,042 60 -90 0 No significant result returned MWDKP006 324,410 6,786,674 1,102 48 -90 0 No significant result returned MWDKP005 322,883 6,785,505 1,075 60 -90 0 No significant result returned MWDKP004 324,566 6,785,505 1,170 72 -90 0 No significant result returned DKP051 324,326 6,785,713 1,170 372 -65 55 Results Pending DKP052 324,756 6,786,024 1,188 354 -60 245 Results Pending DKP053 324,570 6,785,969 1,174 408 -65 75 Significant result returned Q3 2025 DKP054 324,756 6,786,024 1,188 216 -63 60 Significant result returned Q3 2025 DKP055 324,499 6,786,032 1,165 42 -58 60 Results Pending DKP056 324,756 6,786,024 1,188 402 -62 118 Significant result returned Q3 2025 DKP057 324,674 6,786,108 1,182 330 -62 300 Results Pending DKP058 324,785 6,785,775 1,134 402 -58 70 Significant result returned Q3 2025 DKP059 324,868 6,785,715 1,140 120 -60 65 Results Pending DKP062 324,761 6,785,616 1,136 300 -58 80 Results Pending DKP061 324,900 6,785,600 1,147 300 -60 270 Results Pending DKP063 324,564 6,785,708 1,134 417 -70 65 Results Pending DKP064 324,508 6,785,669 1,157 324 -58 100 Results Pending DKP065 324,194 6,785,745 1,152 291 -60 75 Results Pending DKP066 324,564 6,785,708 1,134 342 -60 255 Results Pending DKP067 324,785 6,785,775 1,134 300 -60 114 Results Pending DKP045D 324,410 6,785,944 1,110 840.5 -60 60 Results Pending DKD037 324,524 6,785,836 1,122 777.1 -62 70 Results Pending DKP028D 324,763 6,785,620 1,136 866.1 -60 300 Significant result returned Q3 2025 DKD060 324,908 6,785,762 1,139 772.7 -60 260 Results Pending DKP048D 324,740 6,785,847 1,151 457.9 -65 80 Results Pending DKD049 324,600 6,785,852 1,126 779.9 -60 260 Significant result returned Q4 2025 Table 2. Significant Drilling Intersections from La Verde in Quarter 2 2026 Hole ID Coordinates Azim Dip Hole Depth Intersection Interval Copper Eq1 Copper Gold Silver Molyb. North East RL From To (m) (% CuEq) (% Cu) (g/t Au) (ppm Ag) (ppm Mo) DKD040 6785907 324632 1139 60 -59 381 4.4 91.0 86.6 0.45 0.34 0.15 2.11 7 incl 12.0 28.7 16.7 0.60 0.45 0.20 0.78 3 & incl 53.7 78.4 24.7 0.55 0.41 0.19 1.07 6 185.2 349.1 163.9 0.43 0.34 0.11 0.85 17 incl 206.0 226.0 20.0 0.60 0.43 0.23 0.96 12 & incl 285.0 322.0 37.0 0.50 0.42 0.09 0.80 15 DKP041 6785786 324561 1124 55 -70 380 92.0 316.0 224.0 0.40 0.31 0.10 0.64 24 Incl 112.0 136.0 24.0 0.60 0.49 0.15 0.65 14 & Incl 216.0 262.0 46.0 0.50 0.38 0.14 0.64 44 DKD042 6785902 324635 1140 300 -70 258.1 11.6 108.0 96.4 0.40 0.31 0.12 0.79 9 Incl 13.6 25.5 11.9 0.51 0.41 0.13 0.59 8 & Incl 56.4 72.8 16.5 0.45 0.34 0.15 0.51 9 & Incl 84.2 106.6 22.4 0.62 0.46 0.21 2.00 13 DKD044 6785738 324508 1131 70 -65 711.4 0.0 391.3 391.3 0.50 0.42 0.11 0.85 18 Incl 0.0 17.8 17.8 0.68 0.63 0.06 0.70 10 & Incl 103.3 144.0 40.7 0.60 0.50 0.12 0.86 20 & Incl 160.0 245.4 85.4 0.61 0.50 0.15 1.11 12 & Incl 276.1 295.8 19.7 0.70 0.57 0.15 1.06 33
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Page 12 of 33 Hole ID Coordinates Azim Dip Hole Depth Intersection Interval Copper Eq1 Copper Gold Silver Molyb. North East RL From To (m) (% CuEq) (% Cu) (g/t Au) (ppm Ag) (ppm Mo) & Incl 499.0 520.4 21.3 0.45 0.34 0.05 0.87 154 & Incl 595.0 620.8 26.0 0.46 0.39 0.08 0.68 25 DKP028D 6785617 324758 1136 300 -60 866.1 358.0 616.9 258.9 0.42 0.33 0.09 0.62 58 Incl 380.0 447.6 67.6 0.52 0.38 0.13 0.67 85 & Incl 499.5 526.9 27.4 0.76 0.63 0.16 1.00 29 & Incl 570.8 591.3 20.5 0.50 0.40 0.07 0.99 99 & Incl 628.0 674 46 0.31 0.20 0.03 0.50 203 DKP043 6785855 324610 1131 104 -56 342 8.0 214.0 206.0 0.31 0.24 0.08 0.57 37 Incl 46.0 58.0 12.0 0.42 0.32 0.14 0.35 6 & Incl 198.0 214.0 16.0 0.46 0.34 0.12 0.99 80 DKP046 6786025 324597 1153 231 -59 184 28.0 112.0 84.00 0.40 0.32 0.10 0.50 12 Incl 54 72 18.0 0.50 0.41 0.12 0.29 7 DKP047 6785888 324396 1093 70 -65 60 No Significant Intersection DKD049 6785858 324601 1131 80 -62 779.9 78.3 104.4 26.1 0.53 0.40 0.17 1.03 22 503.6 716.6 213.0 0.44 0.38 0.07 0.72 18 Incl 535.8 593.1 57.3 0.60 0.51 0.10 1.11 28 & Incl 624.0 639.8 15.8 0.52 0.45 0.08 0.65 14 DKP050 6785739 324625 1127 75 -60 354 6.0 114.0 108.0 0.37 0.31 0.08 0.31 10 Incl 8.0 48.0 40.0 0.47 0.40 0.10 0.45 6 138.0 240.0 102.0 0.35 0.28 0.09 0.34 19 DKP053 6785969 324570 1174 75 -65 408 0.0 32.0 32.0 0.38 0.34 0.04 0.49 20 64.0 314.0 250.0 0.50 0.39 0.14 0.62 10 Incl 66.0 166.0 100.0 0.58 0.47 0.15 0.65 14 Or Incl 82.0 118.0 36.0 0.72 0.59 0.18 0.44 13 & Incl 248.0 276.0 28.0 0.62 0.46 0.21 0.84 7 DKP054 6786024 324756 1188 60 -63 216 42.0 166.0 124.0 0.46 0.40 0.07 0.36 18 Incl 58.0 84.0 26.0 0.71 0.63 0.10 0.23 9 DKP055 6786037 324505 1165 60 -58 42 0.0 32.0 32.0 0.34 0.30 0.03 0.43 26 DKP056 6786024 324756 1188 118 -62 402 56.0 146.0 90.0 0.45 0.36 0.12 0.65 13 Incl 64.0 94.0 30.0 0.62 0.50 0.17 0.43 6 Or Incl 64.0 80.0 16.0 0.70 0.58 0.18 0.28 7 DKP057 6786108 324674 1182 300 -62 330 56.0 106.0 50.0 0.41 0.35 0.08 0.77 10 DKP058 6785775 324785 1134 70 -58 402 24.0 132.0 108.0 0.54 0.45 0.11 0.68 12 Incl 24.0 56.0 32.0 0.60 0.51 0.10 0.63 6 Notes to Table 1: Significant intercepts for La Verde are reported above a nominal cut-off grade of 0.20% Cu. Reported intersections may include internal dilution (intervals below 0.20% Cu), including zones exceeding 30 m downhole width, where the overall weighted average grade of the intersection remains above the cut-off grade. Significant intersections are separated where zones of internal dilution result in discrete intervals that do not meet the reporting criteria. The selection of a 0.20% Cu cut-off grade is aligned with a marginal economic cut-off for bulk tonnage polymetallic copper deposits of comparable grade in Chile and globally. Significant intersection widths (interval) have been rounded to the nearest metre. 1 Copper Equivalent (CuEq) reported for the drill hole intersections were calculated using the following formula: CuEq% = ((Cu% × Cu price 1% per tonne × Cu_recovery) + (Mo ppm × Mo price per g/t × Mo_recovery) + (Au ppm × Au price per g/t × Au_recovery) + (Ag ppm × Ag price per g/t × Ag_recovery)) / (Cu price 1% per tonne × Cu_recovery). The Metal Prices applied in the calculation were: Cu=4.50 USD/lb, Au=3,150 USD/oz, Mo=20 USD/lb, and Ag=30 USD/oz. The entirety of the intersection is assumed as fresh. The recovery and copper equivalent formula for La Verde uses Cortadera as a proxy, which is considered reasonable given both the similar mineralisation style and amenability testwork completed thus far at La Verde – Recoveries of 83% Cu, 56% Au, 83% Mo and 37% Ag. CuEq (%) = Cu(%) + 0.69 x Au(g/t) + 0.00044 x Mo(ppm) + 0.0043 x Ag(g/t).
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Page 13 of 33 SUMMARY OF CORPORATE ACTIVITIES Strategic Partnering Process Update Hot Chili continues to advance its asset-level strategic Partnering Process, aimed at introducing one or more qualified partners with the financial, technical and operational capability to assist in funding and delivery of the projects. During the quarter, the Company continued to engage with a range of prospective strategic partners with several new non-binding, indicative, incomplete and conditional proposals received following further in-bound interest in Hot Chili’s Partnering Process. The Company’s management continued to facilitate ongoing due diligence activities, including site visits, while discussions continued in relation to existing non-binding, indicative, incomplete and conditional proposals received for potential transactions involving the projects. The Partnering Process may result in a range of transactions for the Projects. Investors are cautioned that there is no certainty the Partnering Process will result in a transaction or binding agreement. BMO Capital Markets continues to act as financial adviser in connection with the Partnering Process. The Company will continue to update the market in accordance with its continuous disclosure obligations. OR Royalty Amendment Agreement Hot Chili has executed a binding Amended and Restated Investment Agreement (the "A&R Investment Agreement") with OR Royalties Inc. (“OR”) under which OR will acquire a Net Smelter Return (NSR) royalty over the La Verde Project, part of the broader Costa Fuego copper -gold development in Chile, for a cash payment of US$15 million. The agreement expands the existing 2023 royalty arrangement between the parties and reinforces OR’s support for the advancement of Costa Fuego. The A&R Investment Agreement brings total royalty consideration under the OR royalty arrangement to US$30 million (see the Company's press releases dated 28 June 2023, and 26 July 2023) with Hot Chili to receive US$15 million ("Royalty Consideration") at closing of the transaction. Hot Chili expects to receive the additional US$15 million (approximately A$21.4 million) upon completion of the agreement in coming days. Importantly, an updated change of control buy -back right was negotiated to ensure strategic flexibility to accommodate and not negatively impact the Company’s ongoing Strategic Partnering Process. Highlights include: • US$15 million in additional non-dilutive funding brings total OR royalty consideration to US$30 million, with proceeds directed toward La Verde and broader Costa Fuego advancement. • La Verde added to OR’s royalty footprint, a pre-resource asset, representing a significant endorsement by one of North America's most technically rigorous royalty companies. • Doubling of “look -through” value given the OR royalty is equivalent to a 1.12% CuEq 1 NSR royalty across payable metals for a total consideration of US$30 million, and Hot Chili’s current market capitalisation of approximately US$280 million. 1 CuEq considers assumed commodity prices and average metallurgical recoveries from test work. See qualifying statements below.
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Page 14 of 33 • Updated Change of Control Buyback prior to the fourth anniversary of the original royalty closing. The OR NSR can be reduced to 0.5% NSR royalty on copper and 2.5% NSR royalty on gold. Combined with Hot Chili’s A$40 million equity raising completed in February 2026, the expected receipt of US$15 million (approximately A$21. 4 million) further strengthens the Company’s funding position as it advances Costa Fuego toward development. See announcement dated 7 th July 2026 for full details of material terms to the OR A&R Investment Agreement. Figure 5. Location map of La Verde in relation to Costa Fuego, Huasco Valley, Chile. Hot Chili’s Costa Fuego tenement landholdings related to the Original OR royalty agreement shown in grey, and additions to the tenement holdings related to the new OR royalty agreement are shown in green.
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Page 15 of 33 Cash Position As of 30 June 2026, the Company had cash of A$25 million and no debt. The operating expenditure for quarter ended 30 June 2026 included payments for staff costs of A$0.8 million and administration and corporate costs of A$1.6 million. The investing expenditure for quarter ended 30 June 2026 included payments for tenements of A$ 0.2 million, and payments for exploration and evaluation of A$ 7.3 million relating to drilling (three drill rigs in operation) and development study activities across the La Verde copper -gold porphyry discovery, value engineering works treams and EIA submission activities. Capital Structure The following summarises the Company's securities on issue: • 202,863,198 ordinary fully paid shares • 1,212,121 options at AUD $2.145 expiring 12 August 2028 • 452,802 service rights • 4,735,415 performance rights Additional ASX Disclosure Information ASX Listing Rule 5.3.2: There was no substantive mining production and development activities during the quarter. ASX Listing Rule 5.3.3 - Schedule of Mineral Tenements as of 30 June 2026. The schedule of Mineral Tenements and changes in interests is appended at the end of this activities report. ASX Listing Rule 5.3.4: Reporting under a use of funds statement in a Prospectus does not apply to the Company currently. ASX Listing Rule 5.3.5: Payments to related parties of the Company and their associates during the quarter per Section 6.1 of the Appendix 5B totalled $ 234,000. This is comprised of directors’ salaries and superannuation of $234,000.
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Page 16 of 33 Health, Safety, Environment and Quality Field operations during the quarter included geological reconnaissance activities, diamond and reverse circulation drilling, sampling exercises baselines and site investigations for EIA and PFS2, across the Company's Costa Fuego project landholdings, focused on La Verde and Productora. Activities on new tenements are run at the Productora or Cortadera operations centers and their safety statistics are included under the figures for all projects. Two Lost Time Injuries (LTIs) were recorded during the quarter. The first involved entrapment of the little finger on a worker’s left hand during drilling activities, resulting in a finger fracture. The second involved a same level fall, resulting in a contusion to a worker’s left hand. Hot Chili's sustainability framework ensures an emphasis on business processes that target long -term economic, environmental and social value. The Company is dedicated to continual monitoring and improvement of health, safety and the environmental systems. There is no greater importance than ensuring the safety of our people and their families. Table 3. HSEQ Quarter 2 2026 Performance and Statistics Deposit Domeyko Productora All Projects Timeframe Q2 2026 Cum.² 2024 Q2 2026 Cum.² 2024 Q2 2026 Cum.² 2024 LTI events 1 1 1 1 2 4 NLTI events 3 1 1 1 4 5 Days lost 13 17 4 4 17 128 LTIFR index 30 19 171 19 49 21 ISR index 388 158 684 75 421 665 IFR Index 120 46 0 37 0 47 Thousands of man-hours 33.5 108 5.8 53 40.4 192 Incidents on materials and asset s 2 2 0 0 2 2 Environmental incidents 0 0 0 0 0 0 Headcount¹ 82 29 14 19 98 62 Notes: HSEQ is the acronym for Health, Safety, Environment and Quality. LTIFR per million -manhours. Safety performance is reported on a monthly basis to the National Mine Safety Authority on a standard E-100 form; (1) Average monthly headcount (2) Cumulative statistics since April, 2024.
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Page 17 of 33 Tenement Changes During the Quarter During the Quarter, the following mining exploration concessions have expired upon reaching their expiration date : “Solar 2”, “Solar 4”, “Solar 6”, “Solar 8”, “Solar 10”, “Soledad 1” and “Soledad 3”. Furthermore, Sociedad Minera La Frontera SpA (“La Frontera”) has claimed 1 mining exploitation concession called “WH 1 1/20”, which is in process to be constituted. During the same period, La Frontera acquired from Antofagasta Minerals S.A., pursuant to purchase and sale agreements, the following mining exploitation concessions: “Arboleda 7 1/25” and “Navarro 1 41/60”. In addition, the following mining exploitation concessions, which are currently in the process of being granted, have been incorporated into the Domeyko Project: “Porfiada Sur 1 1/60”, “Porfiada Sur 2 1/60”, “Porfiada Sur 3 1/40”, and “Porfiada Sur 4 1/60”. Finally, Sociedad Minera El Aguila SpA (“El Aguila”) has claimed 1 mining exploitation concession called “HWZC 1 1/20”, which is in process to be constituted. Figure 6 below outlines the HCH tenement holdings, including any significant changes between quarters. Figure 6. Overview of current HCH tenement package, including major quarter-on-quarter changes
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Page 18 of 33 The Company’s existing tenements are detailed in the tables below. Table 4. Current Tenement Holdings in Chile as of 30th June 2026 Cortadera Project Tenements Cortadera Project N° License ID HCH % Held HCH % Earning Area (ha) Agreement Details 1 ALCENIA 1/10 100% SMEA SpA 50 2 AMALIA 942 A 1/6 100% Frontera SpA 53 3 ATACAMITA 1/82 100% Frontera SpA 82 4 CORROTEO 1 1/260 100% Frontera SpA 260 5 CORROTEO 5 1/261 100% Frontera SpA 261 6 CORTADERA 1 1/200 100% Frontera SpA 200 7 CORTADERA 1/40 100% Frontera SpA 374 8 CORTADERA 2 1/200 100% Frontera SpA 200 9 CORTADERA 41 100% Frontera SpA 1 10 CORTADERA 42 100% Frontera SpA 1 11 LAS CANAS 1/15 100% Frontera SpA 146 12 LAS CANAS 16 100% Frontera SpA 1 13 LAS CANAS ESTE 2003 1/30 100% Frontera SpA 300 14 MAGDALENITA 1/20 100% Frontera SpA 100 15 PAULINA 10 B 1/16 100% Frontera SpA 136 16 PAULINA 11 B 1/30 100% Frontera SpA 249 17 PAULINA 12 B 1/30 100% Frontera SpA 294 18 PAULINA 13 B 1/30 100% Frontera SpA 264 19 PAULINA 14 B 1/30 100% Frontera SpA 265 20 PAULINA 15 B 1/30 100% Frontera SpA 200 21 PAULINA 22 A 1/30 100% Frontera SpA 300 22 PAULINA 24 1/24 100% Frontera SpA 183 23 PAULINA 25 A 1/19 100% Frontera SpA 156 24 PAULINA 26 A 1/30 100% Frontera SpA 294 25 PAULINA 27A 1/30 100% Frontera SpA 300 26 PURISIMA 1/8 (1/2 Y 5/6) 100% Frontera SpA 20 NSR 1.5% 27 CF 1 100% Frontera SpA 300 28 CF 2 100% Frontera SpA 300 29 CF 3 100% Frontera SpA 300 30 CF 4 100% Frontera SpA 300 31 CF 5 100% Frontera SpA 200 32 CF 6 100% Frontera SpA 200 33 CF 7 100% Frontera SpA 100 34 CF 8 100% Frontera SpA 200 35 CF 9 100% Frontera SpA 100 36 CF 10 100% Frontera SpA 200 37 CF 11 100% Frontera SpA 200 38 CHAPULIN COLORADO 1/3 100% Frontera SpA 3 39 CHILIS 1 100% Frontera SpA 200 40 CHILIS 3 100% Frontera SpA 100 41 CHILIS 4 100% Frontera SpA 200 42 CHILIS 5 100% Frontera SpA 200 43 CHILIS 6 100% Frontera SpA 200 44 CHILIS 7 100% Frontera SpA 200 45 CHILIS 8 100% Frontera SpA 200 46 CHILIS 9 100% Frontera SpA 300 47 CHILIS 10 1/38 100% Frontera SpA 190 48 CHILIS 11 100% Frontera SpA 200
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Page 19 of 33 Cortadera Project N° License ID HCH % Held HCH % Earning Area (ha) Agreement Details 49 CHILIS 12 1/60 100% Frontera SpA 300 50 CHILIS 13 100% Frontera SpA 300 51 CHILIS 14 100% Frontera SpA 300 52 CHILIS 15 100% Frontera SpA 300 53 CHILIS 16 100% Frontera SpA 300 54 CHILIS 17 100% Frontera SpA 300 55 CHILIS 18 100% Frontera SpA 300 56 CORTADERA 1 100% Frontera SpA 200 57 CORTADERA 2 100% Frontera SpA 200 58 CORTADERA 3 100% Frontera SpA 200 59 CORTADERA 4 100% Frontera SpA 200 60 CORTADERA 5 100% Frontera SpA 200 61 CORTADERA 6 1/60 100% Frontera SpA 265 62 CORTADERA 7 1/20 100% Frontera SpA 93 63 CRISTINA 1/40 100% SMEA SpA 40 64 DIABLITO 1/5 100% SMEA SpA 25 65 DONA FELIPA 1/10 100% Frontera SpA 50 66 DORO 1 100% Frontera SpA 200 67 DORO 2 100% Frontera SpA 200 68 DORO 3 100% Frontera SpA 300 69 FALLA MAIPO 2 1/10 100% Frontera SpA 99 70 FALLA MAIPO 3 1/8 100% Frontera SpA 72 71 FALLA MAIPO 4 1/26 100% Frontera SpA 26 72 MINORI 1 100% SMEA SpA 300 73 MINORI 2 100% SMEA SpA 300 74 MINORI 3 100% SMEA SpA 300 75 MINORI 4 100% SMEA SpA 300 76 PORFIADA B 100% Frontera SpA 200 77 PORFIADA D 100% Frontera SpA 300 78 PORFIADA G 100% Frontera SpA 200 79 PORFIADA I 100% Frontera SpA 300 80 PORFIADA II 100% Frontera SpA 300 81 PORFIADA III 100% Frontera SpA 300 82 PORFIADA IV 100% Frontera SpA 300 83 PORFIADA V 100% Frontera SpA 200 84 PORFIADA VI 100% Frontera SpA 100 85 PORFIADA X 100% Frontera SpA 200 86 SAN ANTONIO 1 100% Frontera SpA 200 87 SAN ANTONIO 2 100% Frontera SpA 200 88 SAN ANTONIO 3 100% Frontera SpA 300 89 SAN ANTONIO 4 100% Frontera SpA 300 90 SAN ANTONIO 5 100% Frontera SpA 300 91 MARINA 1/10 100% Frontera SpA 100 92 CATITA V 1/9 100% Frontera SpA 9 93 CHILIS 19 100% Frontera SpA 300 94 PAULINA 100% Frontera SpA 100 95 ARBOLEDA 7 1/25 100% Frontera SpA 234 96 NAVARRO 1 41/60 100% Frontera SpA 81 97 WH 1 1/20 100% Frontera SpA 100 TOTAL 19.377 23162 Note. Frontera SpA is a 100% owned subsidiary company of Hot Chili Limited
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Page 20 of 33 Productora Project Tenements Productora Project N° License ID HCH % Held HCH % Earning Area (ha) Agreement Details 1 ALGA 7 A 1/32 80% SMEA SpA 89 2 ALGA VI 4 100% SMEA SpA 2 3 ALGA VI 5/24 80% SMEA SpA 66 4 ARENA 1 1/6 80% SMEA SpA 40 5 ARENA 2 1/17 80% SMEA SpA 113 6 AURO HUASCO 1A 1/8 80% SMEA SpA 35 7 CABRITO-CABRITO 1/9 80% SMEA SpA 50 8 CACHIYUYITO 1 1/20 80% SMEA SpA 100 9 CACHIYUYITO 2 1/60 80% SMEA SpA 300 10 CACHIYUYITO 3 1/60 80% SMEA SpA 300 11 CARMEN I, 1/50 80% SMEA SpA 222 12 CARMEN II, 1/60 80% SMEA SpA 274 13 CF 12 100% Frontera SpA 100 14 CF 13 100% Frontera SpA 200 15 CF 14 100% Frontera SpA 300 16 CHICA 80% SMEA SpA 1 17 CHOAPA 1/10 80% SMEA SpA 50 18 CUENCA A 1/51 80% SMEA SpA 255 19 CUENCA B 1/28 80% SMEA SpA 139 20 CUENCA C 1/51 80% SMEA SpA 255 21 CUENCA D 80% SMEA SpA 3 22 CUENCA E 80% SMEA SpA 1 23 ELEONOR RIGBY 1/10 100% Frontera SpA 100 24 ELQUI 1/14 80% SMEA SpA 61 25 ESPERANZA 1/5 80% SMEA SpA 11 26 FRAN 1 1/60 80% SMEA SpA 220 27 FRAN 12 1/40 80% SMEA SpA 200 28 FRAN 13 1/40 80% SMEA SpA 200 29 FRAN 14 1/40 80% SMEA SpA 200 30 FRAN 15 1/60 80% SMEA SpA 300 31 FRAN 18, 1/60 80% SMEA SpA 273 32 FRAN 2 1/20 80% SMEA SpA 100 33 FRAN 21, 1/46 80% SMEA SpA 226 34 FRAN 3 1/20 80% SMEA SpA 100 35 FRAN 4 1/20 80% SMEA SpA 100 36 FRAN 5 1/20 80% SMEA SpA 100 37 FRAN 6 1/26 80% SMEA SpA 130 38 FRAN 7 1/37 80% SMEA SpA 176 39 FRAN 8 1/30 80% SMEA SpA 120 40 JULI 10 1/60 80% SMEA SpA 300 41 JULI 11, 1/60 80% SMEA SpA 300 42 JULI 12, 1/42 80% SMEA SpA 210 43 JULI 13, 1/20 80% SMEA SpA 100 44 JULI 14, 1/50 80% SMEA SpA 250 45 JULI 15, 1/55 80% SMEA SpA 275 46 JULI 16 1/60 80% SMEA SpA 300 47 JULI 17 1/20 80% SMEA SpA 100 48 JULI 19 80% SMEA SpA 300 49 JULI 20 80% SMEA SpA 300 50 JULI 21 1/60 80% SMEA SpA 300 51 JULI 22 80% SMEA SpA 300 52 JULI 23 1/60 80% SMEA SpA 300 53 JULI 24 1/60 80% SMEA SpA 300
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Page 21 of 33 Productora Project N° License ID HCH % Held HCH % Earning Area (ha) Agreement Details 54 JULI 25 80% SMEA SpA 300 55 JULI 27 B, 1/10 80% SMEA SpA 48 56 JULI 27, 1/30 80% SMEA SpA 146 57 JULI 28, 1/60 80% SMEA SpA 300 58 JULI 9, 1/60 80% SMEA SpA 300 59 JULIETA 10, 1/60 80% SMEA SpA 300 60 JULIETA 11 80% SMEA SpA 300 61 JULIETA 12 80% SMEA SpA 300 62 JULIETA 13 1/60 80% SMEA SpA 298 63 JULIETA 14 1/60 80% SMEA SpA 269 64 JULIETA 15 1/40 80% SMEA SpA 200 65 JULIETA 16 80% SMEA SpA 200 66 JULIETA 17 80% SMEA SpA 200 67 JULIETA 18 1/40 80% SMEA SpA 200 68 JULIETA 5 80% SMEA SpA 200 69 JULIETA 6 80% SMEA SpA 200 70 JULIETA 7 80% SMEA SpA 100 71 JULIETA 8 80% SMEA SpA 100 72 JULIETA 9 80% SMEA SpA 100 73 JULITA ¼ 80% SMEA SpA 4 74 LEONA 2A ¼ 80% SMEA SpA 10 75 LIMARI 1/15 80% SMEA SpA 66 76 LOA 1/6 80% SMEA SpA 30 77 MAIPO 1/10 80% SMEA SpA 50 78 MONTOSA ¼ 80% SMEA SpA 35 NSR 3% 79 ORO INDIO 1A 1/20 80% SMEA SpA 82 80 PEGGY SUE 1/10 100% Frontera SpA 100 81 PRODUCTORA 1/16 80% SMEA SpA 75 84 TOLTEN 1/14 80% SMEA SpA 70 85 URANIO 1/70 0% 350 25-year Lease Agreement US$250,000 per year (average for the 25 year term); plus 2% NSR all but gold; 4% NSR gold; 5% NSR non-metallic 86 ZAPA 1 1/10 80% SMEA SpA 100 87 ZAPA 1/6 80% SMEA SpA 6 GSR 1% 88 ZAPA 3 1/23 80% SMEA SpA 92 89 ZAPA 5A 1/16 80% SMEA SpA 80 90 ZAPA 7 1/24 80% SMEA SpA 120 91 SIERRA SOLIS 1 100% SMEA SpA 200 92 SIERRA SOLIS 2 100% SMEA SpA 300 93 SIERRA SOLIS 3 100% SMEA SpA 300 94 SIERRA SOLIS 4 100% SMEA SpA 200 95 SIERRA SOLIS 5 100% SMEA SpA 300 96 SIERRA SOLIS 6 100% SMEA SpA 300 97 SIERRA SOLIS 7 100% SMEA SpA 300 98 SIERRA SOLIS 8 100% SMEA SpA 300 99 ZAPALLO 1 100% SMEA SpA 100 100 ZAPALLO 2 100% SMEA SpA 200 101 ZAPALLO 3 100% SMEA SpA 200 102 HWZC 1 1/14 100% SMEA SpA 98 TOTAL 17.276 Note. SMEA SpA is subsidiary company - 80% owned by Hot Chili Limited, 20% owned by CMP (Compañía Minera del Pacífico) Note. Frontera SpA is a 100% owned subsidiary company of Hot Chili Limited.
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Page 22 of 33 Domeyko Project Tenements Domeyko Project N° License ID HCH % Held HCH % Earning Area (ha) Agreement Details 1 ANTONIO 1 1/56 100% Frontera SpA 280 100% HCH Domeyko Purchase Option Agreement US$320,000 (already satisfied) US$200,000 payable by April 19th 2027 US$3.480,000 payable by April 19th 2028 NSR 1% 2 ANTONIO 1/40 100% Frontera SpA 200 3 ANTONIO 10 1/21 100% Frontera SpA 63 4 ANTONIO 19 1/30 100% Frontera SpA 128 5 ANTONIO 21 1/20 100% Frontera SpA 60 6 ANTONIO 36 1/15 100% Frontera SpA 74 7 ANTONIO 5 1/40 100% Frontera SpA 200 8 ANTONIO 9 1/40 100% Frontera SpA 193 9 CAZURRO 1 100% Frontera SpA 200 10 CAZURRO 2 100% Frontera SpA 200 11 CAZURRO 3 100% Frontera SpA 300 12 CAZURRO 4 100% Frontera SpA 300 13 CAZURRO 5 100% Frontera SpA 100 14 CAZURRO 6 100% Frontera SpA 200 15 CAZURRO 7 100% Frontera SpA 200 16 CAZURRO 8 100% Frontera SpA 200 17 CERRO MOLY 1 100% Frontera SpA 300 18 CERRO MOLY 2 100% Frontera SpA 300 19 CERRO MOLY 3 100% Frontera SpA 300 20 CERRO MOLY 4 100% Frontera SpA 300 21 CAZURRO 3 1/60 100% Frontera SpA 300 22 CAZURRO 4 1/60 100% Frontera SpA 300 23 CAZURRO 7 1/40 100% Frontera SpA 200 24 EMILIO 1 1/8 100% Frontera SpA 38 25 EMILIO 3 1/9 100% Frontera SpA 45 26 INES 1/40 100% Frontera SpA 200 27 LORENA ½ 100% Frontera SpA 2 28 MERCEDITA 1/7 100% Frontera SpA 22 29 PRIMO 1 1/6 100% Frontera SpA 36 30 SANTIAGUITO 5 1/24 100% Frontera SpA 114 31 DOMINOCEROS 1/20 (1/4) 100% Frontera SpA 20 100% HCH Dominoceros Purchase Option Agreement US$1,000,000 (already satisfied) US$1,000,000 payable by October 25th 2026 US$6,890,000 payable by October 25th 2027 32 CF SUR 1 100% Frontera SpA 300 33 CF SUR 2 100% Frontera SpA 300 34 CF SUR 3 100% Frontera SpA 300 35 CF SUR 4 100% Frontera SpA 300 36 CF SUR 5 100% Frontera SpA 200 37 CF SUR 6 100% Frontera SpA 300 38 CF SUR 7 100% Frontera SpA 300 39 CF SUR 8 100% Frontera SpA 300 40 CF SUR 9 100% Frontera SpA 200 41 CF SUR 10 100% Frontera SpA 200 42 CF SUR 11 100% Frontera SpA 300 43 CF SUR 12 100% Frontera SpA 300 44 CF SUR 13 100% Frontera SpA 300 45 CF SUR 14 100% Frontera SpA 300 46 CF SUR 15 100% Frontera SpA 200 47 CF SUR 16 100% Frontera SpA 300 48 CF SUR 17 100% Frontera SpA 300
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Page 23 of 33 Domeyko Project N° License ID HCH % Held HCH % Earning Area (ha) Agreement Details 49 CF SUR 18 100% Frontera SpA 300 50 CF SUR 19 100% Frontera SpA 300 51 CF SUR 20 100% Frontera SpA 300 52 CF SUR 21 100% Frontera SpA 300 53 CF SUR 22 100% Frontera SpA 300 54 CF SUR 23 100% Frontera SpA 200 55 CF SUR 24 100% Frontera SpA 200 56 CF SUR 25 100% Frontera SpA 300 57 CF SUR 26 100% Frontera SpA 300 58 CF SUR 27 100% Frontera SpA 300 59 CF SUR 28 100% Frontera SpA 200 60 CF SUR 29 100% Frontera SpA 300 61 CF SUR 30 100% Frontera SpA 200 62 CF SUR 31 100% Frontera SpA 300 63 CF SUR 32 100% Frontera SpA 300 64 CF SUR 33 100% Frontera SpA 300 65 CF SUR 34 100% Frontera SpA 300 66 CF SUR 35 100% Frontera SpA 300 67 CF SUR 36 100% Frontera SpA 200 68 CF SUR 37 100% Frontera SpA 200 69 KRETA ¼ 100% Frontera SpA 16 The mining concession is included in SanAntonio Purchase Option Agreement 70 MARI 1 100% Frontera SpA 300 71 MARI 1/12 100% Frontera SpA 64 The mining concession is included in San Antonio Purchase Option Agreement 72 MARI 6 100% Frontera SpA 300 73 MARI 8 100% Frontera SpA 300 74 PAJONALES 100% Frontera SpA 300 75 PORFIADA SUR 1 1/60 100% Frontera SpA 300 76 PORFIADA SUR 2 1/60 100% Frontera SpA 300 77 PORFIADA SUR 3 1/40 100% Frontera SpA 200 78 PORFIADA SUR 4 1/60 100% Frontera SpA 300 TOTAL 17.855 Note. Frontera SpA is a 100% owned subsidiary company of Hot Chili Limited. El Fuego Project Tenements San Antonio Project N° License ID HCH % Held HCH % Earning Area (ha) Agreement Details 1 MERCEDES 1/3 100% Frontera SpA 50 100% HCH San Antonio Purchase Option Agreement USD 2,400,000 already paid. US$2,000,000 payable by September 30th 2026 to exercise the El Fuego Option. (2 additional and conditional payments of USD 2,000,000, each one, to be paid by December 31, 2030 under certain conditions detailed at title “Tenement Changes During the Quarter” of this quarterly report.) 2 PORFIADA A 1/33 100% Frontera SpA 160 3 PORFIADA C 1/60 100% Frontera SpA 300 4 PORFIADA E 1/20 100% Frontera SpA 100 5 PORFIADA F 1/50 100% Frontera SpA 240 6 PORFIADA IX 1/60 100% Frontera SpA 300 7 PORFIADA VII 1/60 100% Frontera SpA 270 8 PORFIADA VIII 1/60 100% Frontera SpA 300 9 PRIMA 1 100% Frontera SpA 1 10 PRIMA 2 100% Frontera SpA 2 11 ROMERO 1/31 100% Frontera SpA 31 12 SAN ANTONIO 1/5 100% Frontera SpA 25 13 SAN JUAN SUR 1/5 100% Frontera SpA 10 14 SAN JUAN SUR 6/23 100% Frontera SpA 90 15 SANTIAGO Z 1/30 100% Frontera SpA 300
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Page 24 of 33 San Antonio Project N° License ID HCH % Held HCH % Earning Area (ha) Agreement Details 16 SANTIAGO 1/4 Y 20 100% Frontera SpA 75 17 SANTIAGO 15/19 100% Frontera SpA 25 18 SANTIAGO 21/36 100% Frontera SpA 76 19 SANTIAGO 37/43 100% Frontera SpA 26 20 SANTIAGO A, 1/26 100% Frontera SpA 244 21 SANTIAGO B, 1/20 100% Frontera SpA 200 22 SANTIAGO C, 1/30 100% Frontera SpA 300 23 SANTIAGO D, 1/30 100% Frontera SpA 300 24 SANTIAGO E, 1/30 100% Frontera SpA 300 TOTAL 3.725 Note. Frontera SpA is a 100% owned subsidiary company of Hot Chili Limited. Cordillera Project N° License ID HCH % Held HCH % Earning Area (ha) Agreement Details 1 ALBORADA III 1/35 100% Frontera SpA 162 100% HCH Purchase Option Agreement USD 100,000 already paid US$100,000 payable by November 14th 2026 US$100,000 payable by November 14th 2027 US$3,700,000 payable by November 14th 2028 NSR 1% for underground mining and 1,5% for open- pit mining 2 ALBORADA IV 1/20 100% Frontera SpA 54 3 ALBORADA VII 1/25 100% Frontera SpA 95 4 CAT IX 1/30 100% Frontera SpA 150 5 CATITA IX 1/20 100% Frontera SpA 100 6 CATITA XII 1/13 100% Frontera SpA 61 7 CORDILLERA 1/5 100% Frontera SpA 20 8 HERREROS 1/14 100% Frontera SpA 28 9 MINA HERREROS III 1/6 100% Frontera SpA 18 10 MINA HERREROS IV 1/10 100% Frontera SpA 23 11 PORSIACA 1/20 100% Frontera SpA 20 12 QUEBRADA 1/10 100% Frontera SpA 28 13 VETA 1/17 100% Frontera SpA 17 TOTAL 776 Note. Frontera SpA is a 100% owned subsidiary company of Hot Chili Limited. Qualifying Statements The scientific and technical information relating to the Company’s Costa Fuego project in this report has been derived from o r is based on the Costa Fuego Copper project pre -feasibility study (the “Costa Fuego PFS” or 2025 PFS), which has been prepared in accordance with Canadian regulatory requirements set out in National Instrument 43 -101 – Standards of Disclosure for Mineral Projects (“NI 43-101”) and Joint Ore Reserves Committee of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves prepared by the Joint Ore Reserves Committee of the Australasian Institute of Mining and Metallurgy, Australian Institute of Geoscientists and Minerals Council of Australia (the “JORC Code”) and reviewed and approved by the “Qualified Persons” as defined under NI 43-101 and “Competent Persons” as defined under the JORC Code, as set out below. The 2025 PFS was compiled by the Qualified Persons and Competent Persons listed below based on information available up to the effective date of the PFS. Additional details of responsibilities are provided at page 48 of presentation “Costa Fuego Preliminary Feasibility Study March 2025” released on March 27, 2025. Conceptual Open Pit Shells Conceptual open pit shells represent Exploration Targets as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’ (JORC Code). They are based on completed exploration activities reported in the announcement released 19 May 2025 (‘Hot Chili Announces Latest Drill Results for La Verde, Doubling Porphyry Discovery Footprint’). The conceptual open pit shells were generated using copper (Cu) prices of US$3.50/lb Cu and US$6.00/lb Cu on a series of nested Cu grade shells. Other input parameters informing the conceptual open -pit shells (pit slope angles, mining cost, processing cost , etc.) were derived from values reported in the March 2025 Costa Fuego Pre -feasibility Study and are considered appropriate for the style of mineralisation encountered at the La Verde Cu-Au porphyry discovery.
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Page 25 of 33 Any potential quantity and grade of the Exploration Target shown is conceptual in nature. There has been insufficient exploration to estimate a Mineral Resource within the target area, and it is uncertain if further exploration will result in the estimati on of a Mineral Resource. Further exploration activities are detailed in this announcement and include (but may not necessarily be limited to) a progra m of diamond drill holes aiming to extend the mineralised footprint at La Verde. Drilling commenced on 22 September 2025, with the length of the program dependent on a number of considerations including (but not limited to) the results of the exploration activities and regulatory applications and approvals. PFS Technical Report For readers to fully understand the information in this report, they should read the PFS Technical Report available on SEDAR+ (www.sedarplus.ca) and at www.hotchili.net.au in its entirety titled “Costa Fuego Project, Chile, Preliminary Feasibility Study NI 43- 101 Technical Report” dated May 9 2025 with an effective date of March 27 2025, including all qualifications, assumptions, limitations and exclusions. The PFS Technical Report is intended to be read as a whole, and sections should not be read or re lied upon out of context. The technical information in this report is subject to the assumptions and qualifications to be containe d in the PFS Technical Report. The PFS Technical Report replaces and supersedes the technical report titled “Costa Fuego Copper Project – NI 43-101 Technical Report Mineral Resource Estimate Update” dated April 8, 2024, with an effective date of February 26, 2024 (the “2024 PEA”). Qualified Persons – NI 43-101 The PFS was compiled by Wood Australia Pty Ltd with contributions from a team of independent “Qualified Persons” within the meaning of NI 43 -101. The scientific and technical information contained in this report pertaining to Costa Fuego has been reviewed and verified by the following independent qualified persons within the meaning of NI 43-101: • Ms Elizabeth Haren (FAUSIMM (CP) & MAIG) of Haren Consulting – Mineral Resource Estimate • Mr Dean David (FAUSIMM (CP)) of Wood Pty Ltd – Metallurgy • Mr Piers Wendlandt (PE) of Wood Pty Ltd – Market Studies and Contracts, Economic Analysis • Mr David Cuello (MAUSIMM) of GMT Servicios de Ingeniería – Geotechnical • Mr Jeffrey Stevens (Pr. Eng, MSAIMM) of Wood Pty Ltd – Infrastructure and Capital Cost • Mr Luis Bernal (Comisión Minera (PC) Registered Member) of Process Mineral Consulting – Leaching • Mr Anton von Wielligh (FAUSIMM) of ABGM Consulting Pty Ltd – Mine Planning and Scheduling • Mr Edmundo LaPorte (PE, PEng, CPEng, SME Registered Member) of High River Services - Environmental The above independent Qualified Persons have verified the information disclosed herein, including the sampling, preparation, security, and analytical procedures underlying such information. Competent Persons – JORC The information in this report that relates to Mineral Resources, Exploration Results, and Ore Reserves for the Costa Fuego Project is based on information compiled by: • Ms Elizabeth Haren (FAUSIMM (CP) & MAIG) who is a full -time employee of Haren Consulting – Mineral Resource Estimate • Mr Dean David (FAUSIMM (CP)) who is a full-time employee of Wood Pty Ltd – Metallurgy • Mr Piers Wendlandt (PE) who is a full -time employee of Wood Pty Ltd – Market Studies and Contracts, Economic Analysis • Mr David Cuello (MAUSIMM) who is a full-time employee of GMT Servicios de Ingeniería – Geotechnical • Mr Jeffrey Stevens (Pr. Eng, MSAIMM) who is a full-time employee of Wood Pty Ltd – Infrastructure and Capital Cost • Mr Luis Bernal (Comisión Minera (PC) Registered Member) who is a full -time employee of Process Mineral Consulting – Leaching • Mr Anton von Wielligh (FAUSIMM) who is a full -time employee of ABGM Consulting Pty Ltd – Mine Planning and Scheduling • Mr Edmundo LaPorte (PE, PEng, CPEng, SME Registered Member) who is a full-time employee of High River Services – Environmental • Mr Christian Easterday (MAIG), who is the Managing Director and is a full -time employee of Hot Chili Limited – Exploration Results
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Page 26 of 33 Ms Haren, Mr David, Mr Wendlandt, Mr Cuello, Mr Stevens, Mr Bernal, Mr LaPorte, Mr Easterday, and Mr von Wielligh each have sufficient experience, which is relevant to the style of mineralisation and types of deposits under consideration and to the activities undertaken, to qualify as a Competent Person as defined in the JORC Code and as Qualified Persons under NI43-101. Disclaimer This report has been prepared by management of Hot Chili Limited (“Hot Chili” or the “Company”) and does not represent a recommendation to buy or sell securities of the Company. Investors should always consult their investment advisors prior to making any investment decisions. This report does not purport to be complete or contain all of the information that may be material to the current or future business, operations, financial condition or prospects of the Company and Hot Chili makes n o representation or warranty, express or implied, as to the accuracy or completeness of the information contained in this report. Certain information contained herein is based on, or derived from, information obtained from independent third -party sources, publicly available reports and other trade and industry sources. Hot Chili believes that such information is accurate and tha t the sources from which it has been obtained are reliable; however, Hot Chili has not independently verified such information and does not assume any responsibi lity for the accuracy or completeness of such information. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release. Cautionary Note for U.S. Investors Concerning Mineral Resources NI 43-101 is a rule of the Canadian Securities Administrators which establishes standards for all public disclosure an issuer makes of scientific and technical information concerning material mineral projects. Technical disclosure contained in this report has been prepared in accordance with NI 43 -101 and the Canadian Institute of Mining, Metallurgy and Petroleum (“CIM”) Classification System. These standards differ from the requirements of the U.S. Securities and Exchange Commission (“SEC”) and technical information contained in this report may not be comparable to similar information disclosed by domestic United States companies subject to the SEC’s reporting and disclosure requirements. All amounts in this report are in U.S. dollars unless otherwise noted. Forward Looking Statements This report contains certain statements that are "forward -looking information" within the meaning of applicable Canadian securities legislation and “forward -looking statements” within the meaning of applicable Australian securities legislation (collectively, the “for ward-looking statements"). Forward -looking statements reflect the Company's current expectations, forecasts, and projections with respect to future events, many of which are beyond the Company's control, and are based on certain assumptions. No assurance can be given that these expectations, forecasts, or projections will prove to be correct, and such forward -looking statements included in this announcement should not be unduly relied upon. Forward -looking information is by its nature prospective and requires the Company to make certain assumptions and is subject to inherent risks and uncertainties. All statements other than statements of historical fact are forward-looking statements. The use of any of the words “capable”, “estimate”, “expansion”, “expectations”, “likely”, "may", "plan", "potential", "project", “reinforce”, “large-scale”, "could", "should", "will", “would”, variants of these words and similar expressions are intended to identify forward -looking statements. In this report, forward -looking statements relate, among other things, to: the potential of the La Verde discovery; regulatory applications and approvals; and the Company's future exploration and other business plans. Forward-looking statements involve known and unknown risks, uncertainties, and other factors, which may cause the actual results, performance, or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward -looking statements. A number of factors could cause actual results to differ materially from a conclusion, forecast or projection contained in the forward-looking statements in this announcement, including, but not limited to, the following material factors: the ability of drilling and other exploration activities to accurately predict mineralisa tion; operational risks; risks related to the cost estimates of exploration; sovereign risks associated with the Company's operati ons in Chile; changes in estimates of mineral resources or mineral reserves of properties where the Company holds interests; recruit ing qualified personnel and retaining key personnel; future financial needs and availability of adequate financing; fluctuat ions in mineral prices; market volatility; exchange rate fluctuations; ability to exploit successful discoveries; the production at o r performance of properties where the Company holds interests; ability to retain title to mining concessions; environmental risks; financial failure or default of joint venture partners, contractors or service providers; competition risks; economic and mar ket conditions; and other risks and uncertainties described elsewhere in this announcement and elsewhere in the Company's p ublic disclosure record.
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Page 27 of 33 Although the forward-looking statements contained in this report are based upon assumptions which the Company believes to be reasonable, the Company cannot assure investors that actual results will be consistent with these forward -looking statements. With respect to forward -looking statements contained in this announcement, the Company has made assumptions regarding: future commodity prices and demand; availability of skilled labour; timing and amount of capital expenditures; future currenc y exchange and in terest rates; the impact of increasing competition; general conditions in economic and financial markets; availability of drilling and related equipment; effects of regulation by governmental agencies; future tax rates; future oper ating costs; availability of future sources of funding; ability to obtain financing; and assumptions underlying estimates related to adjusted funds from operations. The Company has included the above summary of assumptions and risks related to forward -looking information provided in this announcement to provide investors with a more complete perspective on the Company's future operations, and such information may not be appropriate for other purposes. The Company's actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward -looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward -looking statements will transpire or occur, or if any of them do so, what benefits the Company will derive therefrom. For additional information with respect to these and other factors and assumptions underlying the forward -looking statements made herein, please refer to the public disclosure record of the Company, including the Company's most recent Annual Report, which is available on SEDAR+ (www.sedarplus.ca) under the Company's issuer profile. New factors emerge from time to time, and it is not possible for management to predict all those factors or to assess in advance the impact of each such factor on the Company's business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statement. The forward-looking statements contained in this announcement are expressly qualified by the foregoing cautionary statements and are made as of the date of this announcement. Except as may be required by applicable securities laws, the Company does not undertake any obligation to publicly update or revise any forward -looking statement to reflect events or circumstances after the date of this announcement or to reflect the occurrence of unanticipated events, whether as a result of new information, future events or results, or otherwise. Investors should read this entire announcement and consult their own professional advisors to ascertain and assess the income tax and legal risks and other aspects of an investment in the Company.
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28 Mineral Resource Statement Costa Fuego Combined Mineral Resource (Effective Date 26 February 2024) 1 Mineral Resources are reported on a 100% Basis - combining Mineral Resource Estimates for the Cortadera, Productora, Alice and San Antonio deposits. All figures are rounded, reported to appropriate significant figures and reported in accordance with the Joint Ore Reserves Committee Code (2012) and NI 43 -101. Mineral Resource estimation practices are in accordance with CIM Estimation of Mineral Resource and Mineral Reserve Best Practice Guidelines (29 November 2019) and reported in accordance CIM Definition Standards for Mineral Resources and Mineral Reserves (10 May 2014) that are incorporated by reference into NI 43-101. 2 Mineral Resources are inclusive of the Mineral Reserve 3 The Productora deposit is 100% owned by Chilean incorporated company Sociedad Minera El Aguila SpA (SMEA). SMEA is a joint venture (JV) company – 80% owned by Sociedad Minera El Corazón SpA (a 100% subsidiary of Hot Chili), and 20% owned by Compañía Minera del Pacífico S.A (CMP). 4 The Cortadera deposit is controlled by a Chilean incorporated company Sociedad Minera La Frontera SpA (Frontera). Frontera is a subsidiary company – 100% owned by Sociedad Minera El Corazón SpA, which is a 100% subsidiary of Hot Chili. 5 The San Antonio deposit is controlled through Frontera (100% owned by Sociedad Minera El Corazón SpA, which is a 100% subsi diary of Hot Chili Limited) and Frontera is party to an Option Agreement pursuant to which it can earn a 100% interest in the property. 6 The Mineral Resource Estimates (MRE) in the tables above form coherent bodies of mineralisation that are considered amenabl e to a combination of open pit and underground extraction methods based on the following parameters: Base Case Metal Prices: Copper US$ 3.00/lb, Gold US$ 1,700/oz, Molybdenum US$ 14/lb, and Silver US$20/oz. 7 All MRE were assessed for Reasonable Prospects of Eventual Economic Extraction (RPEEE) using both Open Pit and Block Cave E xtraction mining methods at Cortadera and Open Pit mining methods at the Productora, Alice and San Antonio deposits. 8 Metallurgical recovery averages for each deposit consider Indicated + Inferred material and are weighted to combine sulphid e flotation and oxide leaching performance. Process recoveries: Cortadera – Weighted recoveries of 82% Cu, 55% Au, 81% Mo and 36% Ag. CuEq(%) = Cu(%) + 0.55 x Au(g/t) + 0.00046 x Mo(ppm) + 0.0043 x Ag(g/t). San Antonio - Weighted recoveries of 85% Cu, 66% Au, 80% Mo and 63% Ag. CuEq(%) = Cu(%) + 0.64 x Au(g/t) + 0.00044 x Mo(ppm) + 0.0072 x Ag(g/t) Alice - Weighted recoveries of 81% Cu, 47% Au, 52% Mo and 37% Ag. CuEq(%) = Cu(%) + 0.48 x Au(g/t) + 0.00030 x Mo(ppm) + 0.0044 x Ag(g/t). Productora – Weighted recoveries of 84% Cu, 47% Au, 48% Mo and 18% Ag. CuEq(%) = Cu(%) + 0.46 x Au(g/t) + 0.00026 x Mo(ppm) + 0.0021 x Ag(g/t). Costa Fuego – Recoveries of 83% Cu, 53% Au, 71% Mo and 26% Ag. CuEq(%) = Cu(%) + 0.53 x Au(g/t) + 0.00040 x Mo(ppm) + 0.0030 x Ag(g/t) 9 Copper Equivalent (CuEq) grades are calculated based on the formula: CuEq% = ((Cu% × Cu price 1% per tonne × Cu_recovery) + (Mo ppm × Mo price per g/t × Mo_recovery) + (Au ppm × Au price per g/t × Au_recovery) + (Ag ppm × Ag price per g/t × Ag_recovery)) / (Cu price 1% per tonne × Cu recovery). The base case cut- off grade for Mineral Resources considered amenable to open pit extraction methods at the Cortadera, Productora, Alice and San Antonio deposits is 0.20% CuEq, while the cut-off grade for Mineral Resources considered amenable to underground extraction methods at the Cortadera deposit is 0.27% CuEq. It is the Company’s opinion that all the elements included in the CuEq calculation have a reasonable potential to be recovered and sold. 10 Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. The MRE include Inferred Mineral Resources that are considered too speculative geologically to have economic considerations applied to them that would enable the m to be categorised as Mineral Reserves. It is reasonably expected that the majority of Inferred mineral resources could be upgraded to Measured or Indicated Mineral Resources with continued exploration. 11 The effective date of the MRE is 26 February 2024. The MRE was previously reported in the 2024 PEA. Hot Chili Limited confirm s it is not aware of any new information or data that materially affects the information included in the 2024 PEA and all material assumptions and technical parameters stated for the MRE in the 2024 PEA continue to apply and have not materially changed. 12 Hot Chili Limited is not aware of political, environmental, or other risks that could materially affect the potential development of the Mineral Resources other than as disclosed in the 2025 PFS. A detailed list of Costa Fuego Project risks is included in Chapter 25 of the 2025 PFS Technical Report titled “Costa Fuego Copper Project NI43-101 Technical Report Preliminary Feasibility Study” and dated 9 May 2025 (effective 27 March 2025), is available on SEDAR+ (www.sedarplus.ca) and the Company’s website (www.hotchili.net.au).
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29 Ore Reserve Statement Costa Fuego Combined Ore Reserve (Effective Date 27 March 2025) 1 Mineral Reserves are reported on a 100% Basis - combining Mineral Reserve estimates for the Cortadera, Productora, Alice and San Antonio deposits, and have an effective date of 27 March 2025. 2 An Ore Reserve (declared in accordance with JORC Code 2012) was previously reported at Productora, a component of Costa Fuego, on 2nd March 2016 on the ASX. The Company was not subject to the requirements of NI 43-101 at that time. 3 Mineral Reserve estimation practices are in accordance with CIM Estimation of Mineral Resource and Mineral Reserve Best Pra ctice Guidelines (29 November 2019) and reported in accordance CIM Definition Standards for Mineral Resources and Mineral Reserves (10 May 2014) that are incorporated by reference into NI 43-101. Mineral Reserve estimates are in accordance with the JORC Code. References to "Mineral Reserves" mean "Ore Reserves" as defined in the JORC Code and references to "Proven Mineral Reserves" mean "Proved Ore Reserves" as defined in the JORC Code. 4 The Mineral Reserve reported above was not additive to the Mineral Resource. The Mineral Reserve is based on the 26 February 2024 Mineral Resource. 5 Tonnages and grades are rounded to two significant figures. All figures are rounded, reported to appropriate significant figures and reported in accordance with the Joint Ore Reserves Committee Code (2012) and NI 43-101. As each number is rounded individually, the table may show apparent inconsistencies between the sum of rounded components and the corresponding rounded total. 6 Mineral Reserves are reported using long-term metal prices of US$4.30/lb Cu, US$2,280/oz Au, US$27/oz Ag, US$20/lb Mo. 7 The Mineral Reserve tonnages and grades are estimated and reported as delivered to plant (the point where material is delivered to the processing facility) and is therefore inclusive of ore loss and dilution. 8 The Productora deposit is 100% owned by Chilean incorporated company Sociedad Minera El Aguila SpA (SMEA). SMEA is a joint venture (JV) company – 80% owned by Sociedad Minera El Corazón SpA (a 100% subsidiary of Hot Chili), and 20% owned by Compañía Minera del Pacífico S.A (CMP). 9 The Cortadera deposit is controlled by a Chilean incorporated company Sociedad Minera La Frontera SpA (Frontera). Frontera is a subsidiary company – 100% owned by Sociedad Minera El Corazón SpA, which is a 100% subsidiary of Hot Chili. 10 The San Antonio deposit is controlled through Frontera (100% owned by Sociedad Minera El Corazón SpA, which is a 100% subsidiary of Hot Chili) and Frontera is party to an Option Agreement pursuant to which it can earn a 100% interest in the property. 11 The Mineral Reserve Estimate as of 27 March 2025 for Costa Fuego was prepared by Anton von Wielligh, Fellow with the AUSIMM (FAUSIMM). Mr. von Wielligh fulfils the requirements to be a "Qualified Person" within the meaning of NI 43-101 and is the Competent Person under JORC for the Mineral Reserve. 12 Hot Chili Limited is not aware of political, environmental, or other risks that could materially affect the potential deve lopment of the Mineral Reserves other than as disclosed in the 2025 PFS. A detailed list of Costa Fuego Project risks is included in Chapter 25 of the 2025 PFS Technical Report titled “Costa Fuego Copper Project NI43-101 Technical Report Preliminary Feasibility Study” and dated 9 May 2025 (effective 27 March 2025), is available on SEDAR+ (www.sedarplus.ca) and the Company’s website (www.hotchili.net.au). Tonnes CuEq Cu Au Ag Mo Copper Eq Copper Gold Silver Molybdenum (Mt) (%) (%) (g/t) (g/t) (ppm) (kt) (kt) (koz) (koz) (kt) Proved - - - - - - - - - - - Probable 356 0.42 0.34 0.07 0.37 98 1,482 1,213 844 4,248 35 Total 356 0.42 0.34 0.07 0.37 98 1,482 1,213 844 4,248 35 Tonnes CuEq Cu Au Ag Mo Copper Eq Copper Gold Silver Molybdenum (Mt) (%) (%) (g/t) (g/t) (ppm) (kt) (kt) (koz) (koz) (kt) Proved - - - - - - - - - - Probable 146 0.56 0.44 0.16 0.79 93 820 645 734 3,704 14 Total 146 0.56 0.44 0.16 0.79 93 820 645 734 3,704 14 Tonnes CuEq Cu Au Ag Mo Copper Eq Copper Gold Silver Molybdenum (Mt) (%) (%) (g/t) (g/t) (ppm) (kt) (kt) (koz) (koz) (kt) Proved - - - - - - - - - - Probable 502 0.46 0.37 0.10 0.49 97 2,317 1,858 1,578 7,951 49 Total 502 0.46 0.37 0.10 0.49 97 2,317 1,858 1,578 7,951 49 Classification Contained Metal Grade Contained Metal Contained MetalGrade Classification Grade Classification Costa Fuego OP Reserve Costa Fuego UG Reserve Total Costa Fuego Reserve
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30 Appendix 5B Mining exploration entity or oil and gas exploration entity quarterly cash flow report Name of entity Hot Chili Limited ABN Quarter ended (“current quarter”) 91 130 955 725 30 June2026 Consolidated statement of cash flows Current quarter $A’000 Year to date (12 months) $A’000 1. Cash flows from operating activities - - 1.1 Receipts from customers 1.2 Payments for - - exploration & evaluation (a) development - - (b) production - - (c) staff costs (755) (2,987) (d) administration and corporate costs (1,609) (5,898) 1.3 Dividends received (see note 3) - - 1.4 Interest received 177 336 1.5 Interest and other costs of finance paid - - 1.6 Income taxes paid - - 1.7 Government grants and tax incentives - - 1.8 Other (provide details if material) - - 1.9 Net cash from / (used in) operating activities (2,187) (8,549) 2. Cash flows from investing activities - - 2.1 Payments to acquire or for: (a) entities (b) tenements (215) (4,234) (c) property, plant and equipment (130) (198) (d) exploration & evaluation (7,276) (18,819) (e) investments - - (f) other non-current assets - - 2.2 Proceeds from the disposal of: - - (a) entities (b) tenements - - (c) property, plant and equipment - -
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31 Consolidated statement of cash flows Current quarter $A’000 Year to date (12 months) $A’000 (d) investments - - (e) other non-current assets - - 2.3 Cash flows from loans to other entities - - 2.4 Dividends received (see note 3) - - 2.5 Other (CMP recoup) - 1,292 2.6 Net cash from / (used in) investing activities (7,621) (21,959) 3. Cash flows from financing activities - 54,189 3.1 Proceeds from issues of equity securities (excluding convertible debt securities) 3.2 Proceeds from issue of convertible debt securities - - 3.3 Proceeds from exercise of options - - 3.4 Transaction costs related to issues of equity securities or convertible debt securities (100) (3,772) 3.5 Proceeds from borrowings - - 3.6 Repayment of borrowings - - 3.7 Transaction costs related to loans and borrowings - - 3.8 Dividends paid - - 3.9 Other (provide details if material) - - 3.10 Net cash from / (used in) financing activities (100) 50,417 4. Net increase / (decrease) in cash and cash equivalents for the period 4.1 Cash and cash equivalents at beginning of period 35,220 5,189 4.2 Net cash from / (used in) operating activities (item 1.9 above) (2,187) (8,549) 4.3 Net cash from / (used in) investing activities (item 2.6 above) (7,621) (21,959) 4.4 Net cash from / (used in) financing activities (item 3.10 above) (100) 50,417 4.5 Effect of movement in exchange rates on cash held (364) (150) 4.6 Cash and cash equivalents at end of period 24,948 24,948
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32 5. Reconciliation of cash and cash equivalents at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts Current quarter $A’000 Previous quarter $A’000 5.1 Bank balances 8,841 5,428 5.2 Call deposits 16,107 29,792 5.3 Bank overdrafts - - 5.4 Other (provide details) - - 5.5 Cash and cash equivalents at end of quarter (should equal item 4.6 above) 24,948 35,220 6. Payments to related parties of the entity and their associates Current quarter $A'000 6.1 Aggregate amount of payments to related parties and their associates included in item 1 234 6.2 Aggregate amount of payments to related parties and their associates included in item 2 - Note: if any amounts are shown in items 6.1 or 6.2, your quarterly activity report must include a description of, and an explanation for, such payments. 7. Financing facilities Note: the term “facility’ includes all forms of financing arrangements available to the entity. Add notes as necessary for an understanding of the sources of finance available to the entity. Total facility amount at quarter end $A’000 Amount drawn at quarter end $A’000 7.1 Loan facilities - - 7.2 Credit standby arrangements - - 7.3 Other (please specify) - - 7.4 Total financing facilities - - 7.5 Unused financing facilities available at quarter end - 7.6 Include in the box below a description of each facility above, including the lender, interest rate, maturity date and whether it is secured or unsecured. If any additional financing facilities have been entered into or are proposed to be entered into after quarter end, include a note providing details of those facilities as well.
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33 8. Estimated cash available for future operating activities $A’000 8.1 Net cash from / (used in) operating activities (item 1.9) (2,187) 8.2 (Payments for exploration & evaluation classified as investing activities) (item 2.1(d)) (7,276) 8.3 Total relevant outgoings (item 8.1 + item 8.2) (9,463) 8.4 Cash and cash equivalents at quarter end (item 4.6) 24,948 8.5 Unused finance facilities available at quarter end (item 7.5) - 8.6 Total available funding (item 8.4 + item 8.5) 24,948 8.7 Estimated quarters of funding available (item 8.6 divided by item 8.3) 2.64 Note: if the entity has reported positive relevant outgoings (ie a net cash inflow) in item 8.3, answer item 8.7 as “N/A”. Otherwise, a figure for the estimated quarters of funding available must be included in item 8.7. 8.8 If item 8.7 is less than 2 quarters, please provide answers to the following questions: 8.8.1 Does the entity expect that it will continue to have the current level of net operating cash flows for the time being and, if not, why not? N/A 8.8.2 Has the entity taken any steps, or does it propose to take any steps, to raise further cash to fund its operations and, if so, what are those steps and how likely does it believe that they will be successful? N/A 8.8.3 Does the entity expect to be able to continue its operations and to meet its business objectives and, if so, on what basis? N/A Note: where item 8.7 is less than 2 quarters, all of questions 8.8.1, 8.8.2 and 8.8.3 above must be answered. Compliance statement 1 This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A. 2 This statement gives a true and fair view of the matters disclosed. Date: 30 July 2026 Authorised by: By the Board (Name of body or officer authorising release – see note 4) Notes 1. This quarterly cash flow report and the accompanying activity report provide a basis for informing the market about the entity’s activities for the past quarter, how they have been financed and the effect this has had on its cash position. An entity that wishes to disclose additional information over and above the minimum required under the Listing Rules is encouraged to do so. 2. If this quarterly cash flow report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash
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34 Flows apply to this report. If this quarterly cash flow report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standards apply to this report. 3. Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity. 4. If this report has been authorised for release to the market by your board of directors, you can insert here: “By the board”. If it has been authorised for release to the market by a committee of your board of directors, you can insert here: “By the [name of board committee – eg Audit and Risk Committee]”. If it has been authorised for release to the market by a disclosure committee, you can insert here: “By the Disclosure Committee”. 5. If this report has been authorised for release to the market by your board of directors and you wish to hold yourself out as complying with recommendation 4.2 of the ASX Corporate Governance Council’s Corporate Governance Principles and Recommendations, the board should have received a declaration from its CEO and CFO that, in their opinion, the financial records of the entity have been properly maintained, that this report complies with the appropriate accounting standards and gives a true and fair view of the cash flows of the entity, and that their opinion has been formed on the basis of a sound system of risk management and internal control which is operating effectively.